Multiple Choice
At December 31, 2013, HIJ had 2,000 common shares outstanding.On January 1, 2014, HIJ issued 1,000 convertible preferred (one share of common for one share of preferred) shares.During 2014, HIJ declared and paid $4,000 cash dividends on the common and $4,000 cash dividends on the preferred (the annual requirement) .Net income for the year ended December 31, 2014, was $36,000.Assuming an income tax rate of 50 percent, what should be diluted earnings per share for the year ended December 31, 2014?
A) $12
B) $17
C) $16
D) $18
Correct Answer:
Verified
Correct Answer:
Verified
Q51: You are given the following information about
Q52: When there has been a retrospective change
Q53: Convertible securities and options are always included
Q54: Stock rights, options, and warrants determined to
Q55: DCE had 900 common shares outstanding on
Q57: The 2014 net income of MNO was
Q58: On January 1, 2012, KAR had 60,000
Q59: Stock dividend and stock splits are treated
Q60: At the beginning of the year, a
Q61: A firm has 10,000 common shares outstanding